Abu Dhabi Cracks Down on Crypto Mining in Farms, Levies Heavy Fines

• Abu Dhabi bans crypto mining on farms, citing misuse of agricultural land.
• Violators of the brand new regulation in Abu Dhabi face penalties of as much as Dh10,000.
• Venezuela disconnects crypto mines from the facility grid, seizing over 2,000 machines.

In a big transfer to curb the misuse of agricultural websites and management extreme electrical energy consumption, the Abu Dhabi Agriculture and Meals Security Authority (Adafsa) has introduced a strict prohibition on cryptocurrency mining in farms. The announcement was made on Thursday, as confirmed by native media Khaleej Instances. 

Crypto mining, the mechanism for validating transactions and minting new crypto belongings like Bitcoin, is understood for its excessive electrical energy consumption as a result of highly effective computer systems it requires. In keeping with the report, Adafsa’s determination comes amid considerations that the energy-intensive strategy of mining cryptocurrencies results in unsustainable spikes in electrical energy prices, which may jeopardize farm operations.

The authority has made it clear that farmhouses should not outfitted to deal with the excessive energy calls for related to cryptocurrency mining. Furthermore, Adafsa’s advisory burdened that farms are designated for agriculture, and repurposing them for mining disrupts their supposed use.

In parallel, violators of this new regulation might face hefty penalties, with fines reaching as much as Dh10,000 or $2,722.57. This measure is a component of a bigger initiative to advertise sustainable vitality use and correct land utilization throughout agricultural websites.

Whereas the UAE permits blockchain-related actions, it enforces strict guidelines to make sure they’re carried out responsibly and throughout the acceptable settings.

In a associated growth, the Venezuelan Ministry of Electrical Energy has equally taken a agency stance towards cryptocurrency mines, disconnecting them from the facility grid. This motion is a part of Venezuela’s broader crackdown on crypto mining, which has already resulted within the confiscation of over 2,000 mining machines and the indictment of a number of officers. 

Each Abu Dhabi and Venezuela’s stringent insurance policies replicate a rising development of regulatory our bodies worldwide taking steps to handle the environmental and infrastructural challenges posed by the rising cryptocurrency mining business.